PFAs Generate N266bn From Fixed Income Securities
The Pension Fund Administrators (PFAs) recorded N266.13bn gain from investment of pension funds in fixed-income securities in the third quarter of 2022.
The commission revealed this in its 2022 third-quarter report on ‘Interest/coupons and dividends’.
It stated, “The interest/coupons received on investments in fixed income securities amounted to N266.13bn in Q3:2022. The amount indicated an increase of 15.6 per cent per cent compared to the sum of N230.21bn recorded in Q2:2022;
“The increase was attributed to higher yields on additional investments/ reinvestments in fixed-income securities during the period. Furthermore, dividends of N13.76bn received in RSA active funds represented a N11.91bn decrease relative to dividends of N25.66bn received in Q2:2022.”
The commission said monthly pension contributions totalling N367.62bn were received in Q3, 2022 for RSA Funds I, II, III, V and VI active.
It noted that the amount was a decrease compared to the total contributions of N372.52 recorded in Q2, 2022.
According to the report on net un-realised gains/(losses) on equities/equity funds and bonds, it said total unrealised losses on the RSA ‘active’ funds in Q3, 2022 amounted to N91.96bn compared to unrealised gains of N25.88bn Q2, 2022.
The unrealised losses were attributed to depreciation in both the prices of equity and bond during the period as the pension equity index and the S&P FMDQ Nigeria Sovereign bond index depreciated by nine per cent and 4.38 per cent, respectively
On net realised gains/(losses) on bonds, it said total realised gains for the period decreased significantly by N8.25bn from N10.25 in Q2,2022 to N2bn in Q3, 2022.
On transfers to RSA retiree funds and benefits payments, it said total transfers from RSA ‘Active’ Funds to RSA retiree fund and payment of 25 per cent unemployment benefits in Q3, 2022 amounted to N349.7bn, which was higher by 30.69 per cent, of N267.58bn outflows in Q2, 2022.
The commission showed the report on the portfolio performance of the RSA active fund.
It said the average rate of return for RSA Funds I, II, III, V and VI Active were 3.42 per cent, 4.99 per cent, 7.65 per cent, 9.19 per cent and 6.87 per cent respectively.
The commission said the direction of performances for the funds reflected the asset allocation and security selection of the various funds under management.
It noted that the relatively lower performances of the RSA Funds for I, II & VI Active in Q3, 2022 were due to significant depreciation in the prices of equities and Marked to Market bonds during the period.
Funds I and II recorded the highest unrealised losses due to higher exposure to equities and MTM bonds, it said.